Need advice on co-op refinance (Union, Bethpage: insurance, mortgage, refinancing)

[killerz298]

I purchased my co-op on 6/29/10. The original loan amount was $160,000.00 for a 30 year fixed with a 5% interest rate and mandatory 1 point. Right now the loan balance is $155,369.71 and rates are around 3.729 APR. I am thinking of refinancing.

Does it make sense for me to refinance? I know I won't be at this location forever but I have no set plans to leave right now. I could see myself being here AT LEAST another 3 years minimum. Does it make financial sense for me to refinance?

Does anyone know any banks on the island that do co-op refinances as many banks wouldn't even do regular co-op mortgages? I know Bethpage and Astoria federal do but I am not sure about any others. It looks like Teacher's Federal Credit does it as well. I am a bit confused about their "no closing cost" option though as it shows the closing cost to be $1,073.00. I am debating if I do this refi if I should do a no fee option. I have the cash to pay but does it make sense to?


30 year with closing costs:

Teachers Federal Credit Union's origination charge $742.50
Your charge for this interest rate $0.00
Required services we select $469.00
Appraisal Fee $325.00
Credit Report Fee $28.00
Desktop Underwriting Fee $30.00
Flood Determination $10.00
Tax Service Fee $76.00
Title services and lender's title insurance $875.00
Government recording charges $40.00
Total Estimated Settlement Charges $2,126.50


30 year no closing cost:

Teachers Federal Credit Union's origination charge $745.00
Your credit for this interest rate ($1,056.00)
Required services we select $469.00
Appraisal Fee $325.00
Credit Report Fee $28.00
Desktop Underwriting Fee $30.00
Flood Determination $10.00
Tax Service Fee $76.00
Title services and lender's title insurance $875.00
Government recording charges $40.00
Total Estimated Settlement Charges $1,073.00

[skeeter31]

I am actually in the process of doing a co-op refinance right now. I bought in 2008 and my original loan amount was $145,000 at 6.5% on a 30 year mortgage. I have my original mortgage through CHASE, and I'm refinancing through CHASE as well (through the HARP program since I'm underwater in my loan right now thanks to the economy).

I owe $131,500 right now and I'm getting a 20 year morgage for $135,500 (closing costs put back into the balance) for 4.125%. It's bringing my monthly payment down about $90 a month and cutting 6 years off of my loan timeline. Not to mention the fact that I'm going to continue to pay the old amount and thus pay this new loan off in about 15 years. Not that I plan on being here that long.

I say go for it with the refinance, but I caution you to check and see what your co-op will get appraised for at this time. Mine was appraised for $125,000, and thus I wouldn't have qualified for any normal refinance. Sucks since when I bought, I paid a heck of a lot more than $125,000.

Also be wary that being that you have a co-op, you won't get near the advertised interest rates (as they are calculated for single family houses). But you'd still drop about a percentage point and your payment will go down.

[killerz298]

Originally Posted by skeeter31

I say go for it with the refinance, but I caution you to check and see what your co-op will get appraised for at this time. Mine was appraised for $125,000, and thus I wouldn't have qualified for any normal refinance. Sucks since when I bought, I paid a heck of a lot more than $125,000.

Yes I was concerned about this as well...

Originally Posted by skeeter31

Also be wary that being that you have a co-op, you won't get near the advertised interest rates (as they are calculated for single family houses). But you'd still drop about a percentage point and your payment will go down.

The rates I have been seeing are pretty similar to the regular 30 year so far.